The Federal Government is finalizing plans to concession the Akanu Ibiam International Airport (AIIA), Enugu, to Aero Alliance Consortium under an ambitious 80-year Public-Private Partnership (PPP) agreement.
According to a draft contract obtained by Daily Sun, the concession deal includes comprehensive infrastructure upgrades, a structured staff transition plan for current FAAN personnel, and a clearly outlined revenue-sharing formula.
Key Highlights of the Agreement Include:
- Concession Tenure: 80 years, with an optional 20-year extension based on performance.
- Staff Transition: Existing FAAN staff will be retained by Aero Alliance for 24 months, with full benefits. Redundant staff post-restructuring will be absorbed by the federal government.
- Revenue Sharing: 1% of net income to the Infrastructure Concession Regulatory Commission (ICRC). Aero Alliance gets full control over non-aeronautical revenues but must get approval for aeronautical tariffs.
- Upgrades & Compliance: The concessionaire is mandated to rehabilitate runways, upgrade terminals, and install modern equipment in line with ICAO, IATA, and NCAA standards.
- Force Majeure & Termination: Clear cost-sharing frameworks for political and non-political events, with provisions for termination compensation.
- Monitoring & Reporting: A five-member oversight committee will monitor compliance, and quarterly financial and operational reports are required.
The agreement will become effective once all conditions, including Federal Executive Council approval, ICRC certification, and proof of financing, are fulfilled within 180 days (extendable to 270). Failure to meet these conditions allows either party to withdraw from the deal.
This proposed concession is part of Nigeria’s broader strategy to enhance aviation infrastructure through private sector investment.
